KUALA LUMPUR, Sept 2 — The Kuala Lumpur-Singapore High Speed Rail (HSR) project has been deferred for two years without a penalty imposed on either Malaysia or Singapore, The Edge reported.

The financial weekly reported that the deferral would last until May 31, 2020 “in a spirit of good neighbourliness”.

“It is worth noting that the legally binding agreement between the two nations for the project, signed in 2016, contains no provisions for such a postponement,” The Edge quoted an anonymous source as saying.

Malaysia could have been liable to RM500 million in penalties if the HSR project was cancelled.